‘Tramline Trader’ £1M Investment Scam Uncovered by FCA

Investment Fraud is a type of Authorised Push Payment (APP) fraud, where the victim is persuaded to make a payment through their own bank on the promise of lucrative returns.

These sophisticated scams target individuals looking for investment growth, backed up with professional-looking websites and active social media accounts. However, the seemingly legitimate investment opportunity may not even exist, with the scammer keeping investors’ money instead of investing it.

Like other types of APP fraud, investment scams use impersonation tactics to gain the trust of victims by posing as an established adviser with a seemingly regulated business. If you or a loved one are considering these types of investments, it is important to do your homework, double-check online resources, and ask for independent financial advice if you are not sure.

There are numerous red flags to be mindful of when researching investment opportunities, including:

• Promises that seem too good to be true. This can be a promise of ‘low risk’ and ‘high return’ investments.
• Being contacted out of the blue. ‘Cold approach’ techniques include unsolicited calls, emails, text messages, or even someone knocking on your door.
• The adviser presents investments as a ‘time-limited’ opportunity or an opportunity that must be completed by a specific date for ‘best rates’. This technique can pressure you into agreeing to transfer money without carrying out comprehensive background checks or getting professional advice.
• Pressuring you to stay silent about the investment. This is to stop family and friends from detecting the fraudsters and questioning what they are up to.
• The company isn’t registered with the City watchdog, the Financial Conduct Authority (FCA), who has a list of registered providers and a warning list of unauthorised businesses to avoid.
• Scammers who may be ‘cloning’ the details of an authorised provider. Always double-check that email addresses, website URLs, social media channels, legitimate review sites and contact details match the legitimate provider.

If you think you or a loved one have been a victim of investment fraud, it is essential to report this straight away to your bank, the police and Action Fraud, the National Fraud and Cyber Crime Reporting Centre. Reporting what has happened to you may trigger a criminal investigation into the scam, helping to stop the fraudsters.

Your bank should also investigate your case and, depending on your circumstances, you may receive a refund.

Since October 2024, the Payment Systems Regulator (PSR), an independent economic regulator of payments systems, has introduced the Authorised Push Payment Reimbursement Scheme to ensure victims of fraud are compensated more quickly. The scheme enforces a mandatory reimbursement within five working days, provided they meet the criteria of APP fraud and their claim is not more than £85,000.

However, if your bank will not compensate you or you disagree with their decision, you may be able to file a complaint with the Financial Ombudsman Service (FOS). FOS is a government-backed, independent body capable of settling disputes between financial institutions and their customers, including your bank.

Sarah Spruce, Legal Director at TLW Solicitors, says:

“It’s discouraging to hear of fraud carried out at such a scale as in John Burford’s case. The ‘Tramline Trader’ is a perfect example of the manipulative and fraudulent tactics used by a seemingly ‘legitimate’ adviser to con clients out of millions for personal gain.

We urge anyone who has fallen victim to this or a similar fraud to come forward. Anyone can be scammed; you shouldn’t feel ashamed or embarrassed if this has happened to you.

Our team of experts has experience helping those who may be experiencing a dispute with their banks over APP fraud refunds. We can help progress your claim with FOS, maintaining momentum with the case, as well as simplifying the financial and legal jargon along the way.

Get in touch with my specialist and experienced colleagues and we’ll advise if you are eligible to make a ‘no-win, no-fee’ claim.”